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KUALA LUMPUR (Bernama): The Government has issued a termination letter to Dhaya Maju LTAT Sdn Bhd in connection with the contract for the Klang Valley Double Tracking Phase 2 (KVDT2) project, the High Court heard on Friday (September 25).
Senior federal attorney Nik Mohd Noor Nik Kar informed Superior Court (Construction Division) Judge Datuk Aliza Sulaiman that the letter was sent to the company on Thursday (September 24).
“To bring the court up to date, the Attorney General’s Office informed me this afternoon that the dismissal letter was sent to Dhaya Maju LTAT by certified mail on Thursday,” he said.
The court was scheduled to hear Dhaya Maju LTAT’s request for an injunction against Erinford on Friday.
A party appealing against a court decision can request an Erinford court order, which is used to prevent the other parties from discussing legal action until the appeal is resolved.
Dhaya Maju LTAT had filed, on September 7, a lawsuit against the Government and Transport Minister Datuk Seri Dr Wee Ka Siong, among others, requesting a declaration that there is a valid and binding contract between the company and the government through a letter. of Acceptance of August 19, 2019.
The project was criticized after Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz published a list of 101 projects awarded through direct negotiations worth RM6.61bil during the Pakatan Harapan administration. It includes the KVDT2 project awarded to Dhaya Maju LTAT for a value of RM4,475bil.
On August 28, Wee said in a statement that the ministry would reopen the tender for the KVDT2 project after taking into consideration the results of an extensive study and investigation that found that the cost of such a project under Dhaya Maju-LTAT was overpriced during the Pakatan period. administration.
Nik Mohd Noor, representing the Government and Wee, said they needed to include the letter in the affidavit regarding the plaintiff’s request for a court order.
“We have limited time to prepare the affidavit. If possible, we want defendants to have time to prepare the affidavit until next Wednesday, and maybe we can hear the matter (request for court order) next Friday,” He said.
However, attorney Kuhendran Thanapalasingam, who acted for Dhaya Maju LTAT, said that his client did not receive any termination notice (of the KVDT2 project).
“My friend (Nik Mohd Noor) said there is a termination letter, but has not submitted a copy of the letter.
“My clients are here … we consulted with the director’s receptionist. No one has received the letter,” Kuhendran said as he urged the court to hear the request for injunction on Friday.
Judge Aliza said she had to take the same position as the previous injunction request last week and maintained her opinion that a court order could not be issued to prevent the government and officials from carrying out their public functions.
“I may be wrong, but I think this may be a point to take it to Federal Court. The application (Erinford’s warrant) is dismissed without warrant as to costs,” he said.
On September 18, Judge Aliza dismissed Dhaya Maju LTAT’s request for an interim injunction to restrict and prevent the government from canceling or terminating his contract for the KVDT2 project, pending the resolution of his main lawsuit.
After the decision, Dhaya Maju LTAT’s lawyer told the court that the company would file an appeal against the decision in the appeals court, as well as an Erinford court order.
According to the lawsuit, the company also seeks a statement that any termination or cancellation of the contract by the defendants will be invalid, unlawful and unlawful, in addition to a court order against both defendants to restrict and prevent them from acting or taking action in connection with any cancellation or termination of the contract.
Dhaya Maju LTAT, among others, asks the Government for the outstanding amount of RM 137,054,534.21 with an interest of 5% per year on the outstanding amount until the date of the ruling and the final settlement.
The company also seeks to have damages assessed for Wee’s liability, interest, costs, and other repairs that the court deems timely and appropriate to award.
In its claim, the plaintiff, an 80:20 joint venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and Lembaga Tabung Angkatan Tentera (LTAT) established on June 5, 2017, under the Companies Act 2016, received the KVDT2 Project by means of an Acceptance Letter dated April 4, 2018, with the original contract valued at RM5.58bil.
The company said it had started work on the project immediately upon issuance of the original contract, but the change of government after the 14th General Election resulted in the original contract being unilaterally terminated on October 19, 2018, via notice rescission issued by the Transport. Secretary general of the ministry supposedly for reasons of public interest or national security or national interest.
The plaintiff said that following the termination of the original contract, several meetings or discussions were held between the parties, culminating in the execution of the settlement agreement on August 19, 2019.
The company said that, in accordance with the terms of the settlement agreement, it was awarded the project again with the revised contract amount of RM4,475bil, and that it had duly fulfilled its obligations, allowing the project to make progress. healthy. 24%, made possible with 1,512 dedicated employees and 261 supply and service companies.
To date, the plaintiff said he has completed works that have been certified for the overpayment of RM300,763,033.12 as of the period ending June 30, 2020.
The company said that, in March 2020, there was again a shift in Malaysia’s political landscape that saw a new coalition government known as Perikatan Nasional come to power and that, once again, resulted in the plaintiff landing in means of controversy, confusion and uncertainty regarding the project.
The plaintiff said that, for reasons unknown to him, both defendants refused or failed to perform the relevant contract documents, despite the fact that there is an express requirement that they do so within a period of four months from the date of issuance of the acceptance letter. in accordance with the corresponding Treasury Circular, which to date, said the plaintiff, the corresponding documents have not yet been signed.
He said that despite the existing contract between the plaintiff and the government, Wee had announced on August 28 through a press release, among other things, the decision to cancel or terminate the contract with the plaintiff and reopen the bidding process. for the project through an open tender system. – Bernama
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